LAHORE: The crisis in cotton production in Pakistan has been under continuous pressure for several years, affecting not only the national economy but also exports, textile industry, and millions associated with agriculture.
According to a report by the Pakistan Cotton Ginners Association (PCGA) till February 28 witnessed a significant decline, signaling a serious threat to the sector.
Sajid Mahmood, Head Transfer of Technology at Central Cotton Research Institute Multan while commenting on the report released on Monday said that this year, the total quantity of cotton arriving at factories was recorded at 5.524 million bales, a 34.17% decrease compared to last year’s 8.393 million bales.
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Key reasons for this sharp decline include climate change, reduced cultivation area, water scarcity, rising prices of agricultural inputs, and the absence of appropriate policies. This shortfall has not only created a raw material shortage for the domestic textile industry but is also expected to lead to historic increases in cotton imports.
Sources indicate that cotton worth $5 billion will be imported this year, adding an extra burden on Pakistan’s economy.
Punjab, Pakistan’s largest cotton-producing province, experienced a drastic decline this year.
Last year, Punjab’s cotton production was 4.778 million bales, which dropped to 2.477 million bales this year, marking a 48.16% decrease. These statistics highlight the worsening challenges in cotton cultivation in the province.
Sindh also saw reduced production, though the situation remains comparatively better than Punjab. Sindh’s output fell from 3.614 million bales last year to 3.046 million bales this year, a 15.71% decline. Balochistan’s production remained stable, with no major fluctuations observed.
Analyzing cotton trade trends, the textile sector remained the largest buyer this year, purchasing 92.55% of the total cotton, while exporters and traders acquired only 46,700 bales. This reflects a decline in Pakistan’s exports and diminishing international demand for Pakistani cotton.
Unsold stockpiles surged by 75.37%, indicating reduced domestic demand or market uncertainty.
Monthly arrivals also dropped significantly, from 43,537 bales last year to 13,852 bales this year—a trend signaling further future declines and raising concerns. The number of operational factories has decreased to 39, reflecting adverse impacts on the cotton ginning business.
A major factor behind Pakistan’s declining cotton production is the lack of investment in research and development (R&D) and policy gaps. Over the years, insufficient investment in cotton research and seed improvement has left farmers without access to modern technology and high-yield varieties.
Similarly, the absence of guaranteed support prices has driven farmers toward alternative crops, shrinking the area under cotton cultivation.
Reviving Pakistan’s cotton sector demands immediate action. Policymakers must incentivise cotton growers, formulate integrated policies to address water scarcity, and strengthen R&D by merging institutions like the Pakistan Central Cotton Committee with the Pakistan Agricultural Research Council to establish a unified cotton wing.
Additionally, announcing a support price for cotton is critical to ensuring farmers’ profitability and encouraging them to return to cotton cultivation. Export promotion measures are also needed to enhance Pakistani cotton’s global market position.
The current situation underscores that without urgent, effective interventions, cotton production may decline further in coming years, severely impacting not only the textile industry but the entire economy.
A comprehensive, long-term policy is essential for reviving cotton production, and practical steps must be taken immediately to rescue this sector from crisis.
Copyright Business Recorder, 2025
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